Haley Molyneux - Real Estate WA

**IMPORTANT UPDATE**

The Foreign resident capital gains withholding (FRCGW) rules are changing from 1 January 2025.

Currently, Australian residents selling property must provide a clearance certificate to the purchaser at or before settlement to avoid having 12.5% withheld from a property sale where the value of the property is $750,000 or more.

Under the changes:
the withholding rate will increase from 12.5% to 15%
the $750,000 property value threshold will be removed, and the withholding rules will apply to all property sales.
The changes apply to contracts entered into on or after 1 January 2025.

FRCGW is designed to support the collection of tax liabilities owed by non-residents selling Australian property.

All Australian residents selling property will require a clearance certificate from the ATO, or withholding will apply to the transaction.

If an Australian resident vendor doesn’t provide a clearance certificate by settlement, 15% of the sale price must be withheld by the purchaser and paid to the ATO.

If an amount is withheld from the sale price, the vendor will only receive any refund due after their next income tax return is processed at tax time.

Most clearance certificates will issue within a few days, but it is important to apply early because some can take up to 28 days to issue. They are valid for 12 months, so the vendor doesn’t need to wait until they have signed a contract. Foreign resident vendors may be able to apply to vary the withholding rate.

Clients with property matters, please make sure you’re aware of how Foreign resident capital gains withholding and the changes apply to your circumstances. If you have any questions about this update please reach out to Sherlock Homes Group today!

REIWA UPDATE 📉

Sales transactions in Perth last week were down 4.5 per cent on the previous week, with REIWA members reporting 825 transactions. A closer look shows house sales were down 0.2 per cent compared to the week prior, unit sales were down 11 per cent and land sales were down 21.1 per cent.

Top performing suburbs – Sales
1. Baldivis – 21
2. Perth – 19
3. Armadale – 12
4. Scarborough – 11
5. Byford – 10

Perth’s highest sale price: Oakford – $2,500,000
Perth’s lowest sale price: Furnissdale – $190,000

There were 4,005 properties for sale in Perth at the end of last week, which is 3.8 per cent higher than the previous week. This can be attributed to house listings increasing 4.9 per cent compared to the week prior, unit listings increasing 1.7 per cent and listings for vacant land increasing 3 per cent.
Last week’s total figure of properties available for sale is 15.6 per cent higher than four weeks ago and 20.4 per cent lower than levels seen a year ago.

Who knew book arranging would cause such an uproar: https://trib.al/RDeOmeN

"Beds – and bed linen – really make bedrooms. It is not unusual for people to skimp on the linens – if not financially, then mentally, when coming up with the design for the room." https://trib.al/TczO9iF